News

CytomX Therapeutics CTMX is expected to report fourth-quarter and full-year 2023 results soon. In the last reported quarter, the company beat earnings expectations by 123.53%.

Factors to Note

CytomX does not have any marketed product. Investor focus on the fourth-quarter 2023earnings callwill be on updates regarding key cancer immunotherapeutic candidates, CX-904 and BMS-986288.

CX-904 is an EGFR-CD3 T-cell engager, developed in partnership with Amgen AMGN, while BMS-986288 is a non-fucosylated CTLA-4 targeting Probody therapeutic, developed with Bristol Myers Squibb BMY

Initial dose escalation data from the phase I study on CX-904 in patients with advanced solid tumors that have known EGFR expression is anticipated in the second half of 2024. CytomX has a global co-development alliance with Amgen for CX-904.

BMS-986288 is being evaluated in phase II proof-of-concept studies for microsatellite stable colorectal cancer and non-small cell lung cancer. In 2023, Bristol Myers Squibb prioritized the BMS-986288 program as its lead next-generation CTLA-4 program. Bristol Myers Squibb expects data from the studies to be available in 2024.

Last month, the company announced that the FDA had cleared its investigational new drug (IND) applications to begin phase I clinical studies on its wholly-owned oncology candidates, CX-2051 and CX-801. CX-2051 is an antibody drug conjugate (ADC) targeting EpCAM, which is a high potential oncology target. CX-801 is a conditionally activated interferon alpha-2b. Interferon-alpha 2b is an immunotherapeutic cytokine. Phase I studies on both programs are expected to start in the first half of 2024.

The years 2024 and 2025 are expected to be milestone-rich for CytomX as it believes it will generate proof of concept clinical data across its lead programs. These will allow it to begin registrational studies on the candidates.

Earnings Surprise History

The company’s earnings beat estimates in three of the last four quarters while missing in one. The company has a four-quarter earnings surprise of 45.44%, on average.

CytomX Therapeutics, Inc. Price and EPS Surprise

CytomX Therapeutics’ stock has declined 23.2% in the past year compared with a decrease of 7.2% for the industry.

Image Source: Zacks Investment Research

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for CytomX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: CytomX’s Earnings ESP is 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 2 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CytomX has a Zacks Rank #3.

Stock to Consider

Here is a drug/biotech stock that has the right combination of elements to beat on earnings this time around:

Sarepta Therapeutics SRPT has an Earnings ESP of +306.25% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sarepta Therapeutics’ stock has risen 16.5% in the past year. Sarepta Therapeutics beat earnings estimates in each of the last four quarters. SRPT delivered a four-quarter earnings surprise of 48.67%, on average. Sarepta is slated to report its fourth-quarter earnings on Feb 28.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.